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Specific Identification, FIFO, LIFO, and Weighted-Average Swing Company's beginning inventory and purchases during the fiscal year...

Specific Identification, FIFO, LIFO, and Weighted-Average

Swing Company's beginning inventory and purchases during the fiscal year ended September 30, 20-2, were as follows:

Units Unit Price Total Cost
October 1, 20-1 Beginning inventory 390 $20.5 $7,995
October 18 1st purchase 490 21 10,290
November 25 2nd purchase 220 22 4,840
January 12, 20-2 3rd purchase 300 23.5 7,050
March 17 4th purchase 910 25 22,750
June 2 5th purchase 810 25.5 20,655
August 21 6th purchase 200 26 5,200
September 27 7th purchase 690 27 18,630
4,010 $97,410

Use the following information for the specific identification method.

There are 1,300 units of inventory on hand on September 30, 20-2. Of these 1,300 units:

100 are from October 18, 20-1 1st purchase
200 are from January 12, 20-2 3rd purchase
100 are from March 17 4th purchase
400 are from June 2 5th purchase
200 are from August 21 6th purchase
300 are from September 27 7th purchase

Required:

Calculate the total amount to be assigned to cost of goods sold for the fiscal year ended September 30, 20-2, and ending inventory on September 30, 20-2, under each of the following periodic inventory methods. For the weighted-average method, round the average unit cost to two decimal places. Round all final answers to the nearest dollar.

Cost of Goods Sold Cost of Ending Inventory
1. FIFO $ $
2. LIFO $ $
3. Weighted-average $ $
4. Specific identification $ $

Solutions

Expert Solution

Specific Identification Inventory Method
COST OF GOODS SOLD COST OF ENDING INVENTORY
Units Unit Price Total Units Unit Price Total
Beginning inventory 390 $20.50 $7,995 0 $20.50 $0
1st purchase 390        21.00 $8,190 100        21.00 $2,100
2nd purchase 220        22.00 $4,840 0        22.00 $0
3rd purchase 100        23.50 $2,350 200        23.50 $4,700
4th purchase 810        25.00 $20,250 100        25.00 $2,500
5th purchase 410        25.50 $10,455 400        25.50 $10,200
6th purchase 0        26.00 $0 200        26.00 $5,200
7th purchase 390        27.00 $10,530 300        27.00 $8,100
Total 2710 $64,610 1300 $32,800
Alternative calculation if given Cost of goods available for sale $97,410 Cost of goods available for sale $97,410
goods available for sale and cost Less cost of ending inventory -32,800 Less cost of goods sold -64,610
of goods sold or ending inventory. Cost of goods sold $64,610 Cost of ending inventory $32,800
FIFO Inventory Method
COST OF GOODS SOLD COST OF ENDING INVENTORY
Units Unit Price Total Units Unit Price Total
Beginning inventory 390 $20.50 $7,995 0 $20.50 $0
1st purchase 490        21.00 $10,290 0        21.00 $0
2nd purchase 220        22.00 $4,840 0        22.00 $0
3rd purchase 300        23.50 $7,050 0        23.50 $0
4th purchase 910        25.00 $22,750 0        25.00 $0
5th purchase 400        25.50 $10,200 410        25.50 $10,455
6th purchase 0        26.00 $0 200        26.00 $5,200
7th purchase 0        27.00 $0 690        27.00 $18,630
Total 2710 $63,125 1300 $34,285
Alternative calculation if given Cost of goods available for sale $97,410 Cost of goods available for sale $97,410
goods available for sale and cost Less cost of ending inventory -34,285 Less cost of goods sold -63,125
of goods sold or ending inventory. Cost of goods sold $63,125 Cost of ending inventory $34,285
LIFO Inventory Method
COST OF GOODS SOLD COST OF ENDING INVENTORY
Units Unit Price Total Units Unit Price Total
Beginning inventory 0 $20.50 $0 390 $20.50 $7,995
1st purchase 0        21.00 $0 490        21.00 $10,290
2nd purchase 0        22.00 $0 220        22.00 $4,840
3rd purchase 100        23.50 $2,350 200        23.50 $4,700
4th purchase 910        25.00 $22,750 0        25.00 $0
5th purchase 810        25.50 $20,655 0        25.50 $0
6th purchase 200        26.00 $5,200 0        26.00 $0
7th purchase 690        27.00 $18,630 0        27.00 $0
Total 2710 $69,585 1300 $27,825
Alternative calculation if given Cost of goods available for sale $97,410 Cost of goods available for sale $97,410
goods available for sale and cost Less cost of ending inventory -27,825 Less cost of goods sold -69,585
of goods sold or ending inventory. Cost of goods sold $69,585 Cost of ending inventory $27,825
Weighted-Average Method
$97,410 (cost of units available for sale) ÷ 4010 (units available for sale) = $24.29 weighted-average cost per unit
The cost of goods sold and the cost of the end-of-period inventory are calculated as follows:
Cost of goods sold = 2710 units @ $24.29 = $ 65,830 rounded to upper 10th
Cost of ending inventory = 1300 units @ $24.29 =     31,580 rounded to upper 10th
Total 4010 units                     =   $97,410
Cost of Goods Sold Cost of Ending Inventory
1. FIFO $                        63,125 $       34,285
2. LIFO $                        69,585 $       27,825
3. Weighted-average $                        65,830 $       31,580
4. Specific identification $                        64,610 $       32,800

ekkarill92 answered 2 years ago
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